Suppliers’ shift to predominantly 100 Gbps web backbones continues to cut back the common price of carrying site visitors, enabling profitability at decrease costs. Because of this, value erosion stays the common norm, reflecting the introduction of competitors into new markets and the response of costlier carriers to decrease costs.
Developments within the IP transit market typically mirror regional developments of the transport market, which is pushed by new infrastructure and applied sciences that allow higher scale and effectivity. As a result of IP transit depends on these high-capacity hyperlinks, when transport costs decline, we usually see IP transit costs comply with swimsuit.
And whereas IP transit costs proceed to say no worldwide, the bigger story in probably the most established hubs has been the bottoming out of reported low costs, as a rising variety of carriers place themselves on the decrease finish of the worth vary.
Throughout the cities included within the determine beneath, 100 GigE costs fell 12% compounded yearly from Q2 2022 to Q2 2025.
Weighted Median 100 GigE IP Transit Port Costs & CAGR Worth Decline in Key World Cities
The activation of large-scale subsea cable programs drove probably the most important value declines in traditionally costly creating markets, reminiscent of Africa and South Asia. These high-capacity programs scale back unit prices, fostering intense competitors. Elevated native peering and content material localization additional enhance community efficiency and scale back the subsea price element of IP transit.
Established worldwide community hubs reminiscent of Miami, London, and Singapore have lengthy had an ample variety of suppliers providing service, host a considerable amount of content material, and already report a number of the lowest costs globally. In these markets, the bigger story has been the bottoming out of reported low costs and rising variety of carriers positioning themselves on the decrease finish of the worth vary. In Q2 2025, the bottom 100 GigE costs on provide in probably the most aggressive markets remained regular at $0.05 per Mbps monthly. The bottom for 10 GigE additionally held at $0.07 per Mbps monthly.
In 2025, suppliers indicated {that a} majority of their gross sales combine in key U.S., European, and Asian hubs had been now 100 GigE. However carriers in these hubs are additionally within the strategy of rolling out 400 GigE providers throughout their community, and buyer demand has began to materialize.
In the intervening time, suppliers report that the service represents a really small portion of their gross sales combine (suppose single digits) and is especially restricted to the biggest international hubs in Europe and the U.S. Throughout key cities within the U.S. and Europe, 400 GigE costs vary from $0.08 to $0.09 per Mbps. That’s a mean of three.3 instances the worth of a 100 GigE port throughout key cities. As networks scale to satisfy rising demand, value erosion for IP transit stays a certainty in practically all markets for the foreseeable future.
Get Extra IP Networks Pricing Information
You’ll discover extra analysis like this in our IP Networks Analysis Service: probably the most full supply of information and evaluation about worldwide web capability, site visitors, service suppliers, ASN connectivity, and pricing.
Obtain the government abstract of the evaluation to get an summary of the brand new analysis.
